Energy & Public Finance2026-02-02
Federal Government ends open-ended electricity subsidies from 2026
Source: InsideBusinessNG
By PolicyStreet Editorial Desk
POLICYSTREET briefing
Nigeria’s federal government has announced that, from 2026, it will no longer carry electricity subsidy costs alone. Under a new burden‑sharing framework, any federal, state or local government that wants to keep tariffs below cost will have to fund the subsidy directly from its own budget. The 2026 budget instead channels ₦1.1 trillion into transmission upgrades to improve grid reliability.
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